Residents of Hawaii have varying insurance coverage needs. In some cases, this includes the need for liability coverage in amounts that go beyond the coverage limits of their policies. In such a case, umbrella insurance may be the perfect solution. Whether you live an urban lifestyle in a Honolulu condo or prefer small town life in Haleiwa, Oahu, you may find yourself in a situation in which you are liable for someone else's injuries or property damage. During the times that such costs exceed the coverage offered by regular insurance policies, it helps to have extra liability protection. Learn how affordable this important coverage can be by comparing umbrella insurance quotes in Hawaii.
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Reasons To Consider Umbrella Insurance
- You own a lot in assets and wish to protect those assets.
- You have a young or inexperienced driver in your household.
- You own rental properties.
- You own a boat or recreational vehicle.
- You have a swimming pool on your property.
Whatever your personal situation, if the coverage limits of your current insurance policies do not seem high enough, umbrella insurance may be just what you need.
What Is Umbrella Insurance?
Umbrella insurance, commonly referred to as excess liability insurance, makes sense because it provides extra liability coverage on all of your currently held policies. This extra coverage picks up where your other policies leave off.
If you are responsible for another person's property damage or personal injury, as might happen in the case of a car crash or an accident in your home, your appropriate insurance policy will go into effect to cover the costs. Sometimes, however, the amount of liability coverage offered by your policy is not enough to fully cover both the expenses accrued by the damaged party and your legal defense costs. If you have an umbrella policy, it will cover the difference, up to your new coverage limit.
Who in Hawaii Can Benefit Most from Umbrella Insurance?
As a state where the average home prices exceed $425,000, HI has a lot of well-to-do residents. In fact, this state ranks second only to the District of Columbia on the list of the most expensive states in which to live in the United States.
Wealthy people are the most likely targets of lawsuits, and juries tend to award plaintiffs high amounts when the defendants seem to have the means to cover the exorbitant costs. Likewise, lawyers are more likely to pursue liability cases when the possibility of a large payday exists. An umbrella insurance policy can prevent liability lawsuits from forcing you to pay out a large portion of the wealth you have worked so hard to build.
Even if you do not consider yourself to be wealthy, when you own assets such as a home and a car, you risk losing these possessions if you are liable for costs that exceed your insurance coverage limits. Umbrella insurance can prevent this from happening.
How Much Additional Coverage Do Hawaii Residents Need?
Hawaii residents are required to have liability coverage with their vehicular policies. Many people choose to purchase coverage that exceeds the requirement of $20,000 bodily injury per person, $40,000 bodily injury per accident and $10,000 in property damage. Insurance companies typically allow you to purchase a maximum of $300,000 in bodily injury liability coverage with a vehicle insurance policy, although some companies offer up to $500,000. Similarly, home, condo and renters insurance usually provide a maximum of between $100,000 and $500,000 when it comes to liability coverage.
The question is, "Are these maximum amounts high enough?" Not always. Consider that the average liability cost of an accident that involves serious injuries is $68,000 per injured person and the average liability cost for a fatal collision is currently $3.2 million. The coverage offered by your vehicular insurance policy may not seem like so much after all.
An umbrella insurance policy can provide you with millions of dollars in extra liability coverage at a rate that is not excessive. You can use this coverage to supplement all of the policies through which you currently have liability insurance protection.
Is Umbrella Insurance Expensive in Hawaii?
Like any other insurance policy, the cost of your umbrella insurance policy will depend largely on the amount of coverage you purchase and your risk level, as calculated by the insurance company. Rates can vary from person to person as well as from one insurance provider to another. That is why it is a good idea to compare quotes from at least three different insurance companies before choosing a policy.
Overall, umbrella insurance policies are surprisingly affordable given the large amounts of liability coverage they can provide. Right now, the average cost to purchase an additional $1 million in liability coverage is only about $50 a month. If you have a substantial amount of wealth or assets that you wish to protect, investing in an umbrella insurance policy may be a very wise decision.
Learn More About Umbrella Insurance in Hawaii
Umbrella insurance is not right for everyone, but if you are one of the many Hawaiians who can benefit from the extra insurance coverage that it provides, it is well worth considering. An independent insurance agent in the Trusted Choice® network can help you review your current coverage so you can easily assess your coverage needs and determine whether umbrella insurance is a good fit for you. If you decide to purchase a policy, an agent can provide you with a selection of competitively priced quotes from which to choose.
Trusted Choice agents have offices throughout the state. Contact an agent near you for more information so you can review umbrella insurance quotes and select a policy that's right for you.